Assessment of the New Construction Market in Saint-Petersburg: Current Condition and Development Trends

The current condition of the real estate market in St. Petersburg is characterized by the increased level of competition, wide geography, limited volume of effective demand, as well as high elasticity of price demand, which makes the market of the newly built real estate relevant for the scientific research. The market under analysis involves two components: new construction and resale real estate. This paper assesses the current condition of the new construction market in St. Petersburg. The study analyzes the dynamics of changes in prices for apartments on the new construction market in St. Petersburg and identifies factors that influence price fluctuations, such as the reduction in the key rate, improved mortgage conditions, seasonal price fluctuations, growing construction costs, and VAT increases. The study analyzes the dynamics of average offer prices by types of apartments in the primary real estate market, as well as by districts of St. Petersburg, assesses the structure of demand by types of apartments, analyzes the structure of supply, analyzes the dynamics of changes in the average mortgage rate, taking into account the difference in the primary and secondary real estate market. As a result of the conducted research, the article reveals current trends in the development of the new construction market, such as a reduction in the key rate and mortgage rates, the transition to escrow accounts, increase in the share of apartments with finishing in new buildings, the introduction of renovation programs, active development of transport, etc.